Top 10 cryptocurrencies of 2024 (2024)

Key points

• Bitcoin was the first cryptocurrency and remains the most valuable.
• Since 2009, the cryptocurrency market has expanded to include countless coins.
• Most cryptocurrencies have small market capitalizations.

The cryptocurrency market is known for its unpredictability and volatility. But it has generated incredible gains for long-term investors. That’s probably why crypto bulls believe the sky’s the limit for crypto prices.

While there are thousands of cryptocurrencies on the market, bitcoin and ethereum still dominate. Their market capitalizations comprise about 72% of the $2.41 trillion global crypto market.

Here are the 10 largest cryptocurrencies by market cap, excluding stablecoins.

1. Bitcoin (BTC)

Price: $66,101.60

Market cap: $1.3 trillion

Year-over-year return: 128%

Since its inception in 2009, bitcoin has become the most popular and valuable cryptocurrency. It was created by an individual, or perhaps a group, operating under the pseudonym Satoshi Nakamoto.

Bitcoin’s blockchain-based, decentralized transaction verification and public ledger system revolutionized the world of digital security. But critics have raised environmental concerns about the energy-intensive, proof-of-work consensus mechanism. They also argue that bitcoin needs help scaling its current form. Plus, other cryptos have faster transaction speeds. These quicker speeds make their blockchains more functional than bitcoin’s. That said, bitcoin still dominates the crypto market, representing 54.12%.

2. Ethereum (ETH)

Price: $3,596.23

Market cap: $439.7 billion

Year-over-year return: 96%

Ethereum was one of the first altcoins. An altcoin is an alternative to bitcoin. The leading altcoin debuted in 2015 and ranks second to bitcoin in market capitalization.

What sets the ethereum blockchain apart is its introduction of smart contracts. These contracts are pieces of code that run decentralized applications. The ethereum blockchain now supports over 4,400 dApps and developer tools.

The native cryptocurrency of the ethereum network is ether. In 2023, ethereum transitioned from a proof-of-work consensus mechanism to a less energy-intensive, proof-of-stake transaction system. Ethereum is now a greener investment than bitcoin.

3. BNB (BNB)

Price: $602.37

Market cap: $88.9 billion

Year-over-year return: 143%

BNB is the native token of Binance, one of the most popular cryptocurrency exchanges. The crypto was initially created on the ethereum network but now resides on Binance’s blockchain. It’s used for a range of transactions and applications. The token even gives users discounted fees on the Binance platform.

Like other crypto exchanges, Binance has been caught in the global regulatory crypto crackdown in recent years. In 2023, the U.S. Securities and Exchange Commission sued Binance, accusing it of violating securities laws.

4. Solana (SOL)

Price: $139.00

Market cap: $64.2 billion

Year-over-year return: 728%

Solana launched in March 2020. Like ethereum, its network supports dApps, smart contracts and nonfungible tokens. But solana’s unique, hybrid proof-of-stake and proof-of-history verification system makes it faster and cheaper than ethereum.

Unfortunately, outages have plagued the network since it launched, undermining solana’s credibility. In fact, it has suffered several major and partial outages since early 2022. Solana supporters see the crypto as a potential long-term threat to the ethereum network. But solana’s stability must improve if it wants to live up to its hype as an “ethereum killer.”

5. XRP (XRP)

Price: $0.50

Market cap: $27.8 billion

Year-over-year return: 1%

Created by Ripple Labs, this global payments network is designed to be an alternative to the Society for Worldwide Interbank Financial Telecommunications. SWIFT is the global system banks and other financial institutions use to transfer money.

Ripple Labs claims its technology is faster, cheaper and more transparent than SWIFT. XRP is the native cryptocurrency designed for the Ripple network and XRP Ledger blockchain. In 2023, a judge ruled that the crypto is “not necessarily a security” in certain circ*mstances. But the SEC seeks to levy a nearly $2 billion penalty against Ripple for allegedly selling XRP to institutional investors.

6. Dogecoin (DOGE)

Price: $0.13

Market cap: $18.3 billion

Year-over-year return: 97%

Dogecoin was created in 2013 as a parody of bitcoin. But dogecoin enthusiasts argue that the popular meme coin is a legitimate investment. The crypto has the backing of several high-profile supporters.

Tesla CEO Elon Musk is among the cryptocurrency’s most visible investors. By simply mentioning the crypto, he has triggered extreme volatility in dogecoin prices. Musk faces a lawsuit by dogecoin investors who allege he illegally manipulated prices. Billionaire entrepreneur Mark Cuban is also a dogecoin supporter.

Another thing to note: DOGE has a valuable online brand and a famous Shiba Inu mascot.

7. Toncoin (TON)

Price: $7.22

Market cap: $17.6 billion

Year-over-year return: 413%

In 2018, the developers of the encrypted messaging company Telegram developed the “layer 1” blockchain. The network behind TON is known for its smart contract capability and speed advantage over ethereum.

The blockchain speed for TON is a quick five seconds. But for the cryptocurrency to be competitive among crypto projects, it must attract more developers. Toncoin has generated impressive bullish momentum following recent reports that Telegram is considering an initial public offering.

8. Cardano (ADA)

Price: $0.39

Market cap: $14.1 billion

Year-over-year return: 41%

Cardano is a decentralized proof-of-stake blockchain that debuted in September 2017. The crypto is designed to be more energy-efficient than bitcoin and other proof-of-work blockchains. From the start, cardano’s founder, Charles Hoskinson, co-founder of ethereum, boosted its credibility.

Like ethereum, cardano is focused on functionality, appealing to developers building dApps and verifiable smart contracts. ADA is the primary cryptocurrency used on the network to run dApps and facilitate transactions. By staking cardano, users can help verify the network’s transactions. They then earn additional tokens as a reward for participating in the proof-of-stake system.

9. Avalanche (AVAX)

Price: $28.33

Market cap: $11.1 billion

Year-over-year return: 131%

Avalanche is a 2020-launched ethereum network competitor. Its goal is to create the fastest, most secure network that supports smart contracts, dApps and autonomous blockchains.

AVAX is the native token of the avalanche network. Avalanche users can vote on platform governance and pay transaction fees using the token. Coin creation is limited to 720 million tokens. Avalanche users can vote to alter the rate that AVAX is created. This gives them control over the crypto’s inflation rate. AVAX also has a unique consensus mechanism for verifying transactions. The process involves a sufficient majority of validators approving a transaction.

10. Shiba Inu (SHIB)

Price: $0.000019

Market cap: $11.0 billion

Year-over-year return: 155%

Anonymous founder Ryoshi launched SHIB in 2020 on the ethereum blockchain. Initially dubbed the “dogecoin killer,” it represented a rival dog-themed meme coin.

SHIB has quickly escalated to the top 20 largest cryptos by market cap. While it’s similar to DOGE, there are key differences. For instance, SHIB is built on the ethereum network. This allows SHIB to handle smart contracts and dApps. There’s also a unique community of SHIB followers, known as the SHIBArmy. It helps lead the crypto project’s future development.

*Market caps and pricing are sourced from CoinMarketCap.com, current as of 8:07 a.m. ET on June 20, 2024.

What is cryptocurrency?

Cryptocurrency is a digital asset investors can buy and trade on crypto exchanges. While thousands of cryptocurrencies have unique aspects, many share common traits.

Cryptocurrencies are typically considered alternatives to fiat currencies like the U.S. dollar. A government or central bank normally backs fiat currencies. Most cryptos are decentralized. This means they don’t have government backing and users don’t need a bank to complete transactions.

Crypto transactions are typically secured via a blockchain-based consensus mechanism. Cryptos leverage the power of distributed peer-to-peer computer networks. Their speed and security stem from their unique software protocols.

What is crypto trading?

Crypto trading involves buying and selling cryptocurrencies to generate profits from the transactions. There are several strategies for crypto trading:

• Long-term traders buy and hold crypto, hoping its popularity and price will trend higher over the years or decades.
• Crypto swing traders attempt to capitalize on market trends and momentum by buying and selling cryptocurrencies over a period of days or weeks.
• Crypto day traders aim to buy and sell within a single-day period.
• Crypto scalp traders attempt to buy and sell cryptos throughout the day to accumulate many minimal gains.

Pros and cons of crypto trading

To be a good crypto trader, you must treat the endeavor as your primary job.

“Because the crypto market is so volatile, the rewards from trading can be immense — but so too are the risks,” said Christian Quiver, CEO of League.Tech.

Crypto trading has risks and challenges you should understand before placing an order.

Here are several pros and cons of crypto trading:

Pros

• Most top cryptos have solid long-term performance.
• Supply restrictions limit dilution.
• Demand for cryptocurrencies could grow significantly as institutional investment increases.

Cons

• The crypto market has a record of extreme volatility and unpredictability.
• Crypto may face growing regulatory scrutiny, including potential government bans.
• Crypto doesn’t represent ownership in tangible goods or revenue-generating companies.

How to buy cryptocurrency

Cryptocurrencies trade on exchanges, similar to stocks. But not all exchanges and brokerages support cryptocurrencies, especially altcoins.

To buy cryptocurrency, first identify a broker or exchange that offers crypto trading. Leading crypto brokers include SoFi and Robinhood. Popular cryptocurrency exchanges include Binance and Coinbase.

Steps to opening a cryptocurrency exchange account

Once you choose a crypto broker or exchange, you must create and verify a trading account. The process may vary depending on the platform. But it typically includes the following steps:

1. Create an account. You may need to choose the appropriate account type and submit personal information.
2. Verify your identity. This process may involve submitting a copy of a bank statement, photo ID or other documents.
3. Read and agree to a user agreement. User agreements typically spell out the terms of service associated with your account. These include any penalties or fees you may need to understand.
4. Link a payment method. Choose a bank account or other account type to link to your crypto trading account. This will allow you to transfer money in and out of the account.
5. Fund your account. Consider how much money you want to start with in your crypto trading account. Then, initiate a transfer from your linked account.

Frequently asked questions (FAQs)